The sale of the Edith Creek milk processing site is now a priority for Murray Goulburn.
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After entering an agreement to sell its Victorian Kiewa Country brand, Murray Goulburn has now turned its focus to selling the Edith Creek plant, but there are no confirmed buyers yet.
Murray Goulburn announced in May that it would shut the North-West milk processing facility by the end of this year and has since been assessing which equipment could be transferred from the plant to the processor’s other sites, a spokesman said.
“As this process is progressing, sale of sites is now a priority. The detail regarding the sale of sites will be commercial-in-confidence, as such further information is not available,” the spokesman said.
“Maximising value to Murray Goulburn and its stakeholders remains a key focus in considering future options for the sites and any decision is subject to management and board approval,” he said.
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Despite the sale of the Edith Creek plant being a priority, Tasmania’s other milk processors are playing their cards close to their chests for now.
A Fonterra spokesperson said they would not specifically comment on merger and acquisition activity, but said the business considered relevant opportunities.
“Our business is in good shape and delivering sustainable performance, however like any good business we always look at opportunities to ensure that we’re maximising returns,” the Fonterra spokesperson said.
A Lion Dairy & Drinks spokeswoman said the organisation had three dairy manufacturing sites at Lenah Valley, Burnie and King Island and already had a strong dairy presence in Tasmania.
“We are not currently looking at purchasing any dairy manufacturing sites in the Tasmania,” the Lion spokeswoman said.
The Tasmanian Food Company (TasFoods) said the organisation did not “have any comment on this matter”, and the spokesman for Moon Lake Investments, which trades as VDL Farms, said VDL had “no comment to make about this matter”.
Circular Head Regional Economic Working Group chair and Braddon MHA Joan Rylah said the group welcomed Murray Goulburn’s commitment to prioritise the Edith Creek plant sale.
“The Circular Head Regional Economic Working Group continues to work towards securing the future of the Edith Creek site, with the hope it can be sold,” Ms Rylah said.
“A sale of the facility would secure jobs in the region, and the Hodgman Government and the Circular Head Regional Economic Working Group will continue to administer the $1.5 million in funding committed to programs and initiatives which will assist the diversification and economic development of the Circular Head region, while supporting affected workers and their families,” she said.